The recent imposition of a 14% tariff on Nigerian exports to the United States by President Donald Trump has raised concerns about its potential to significantly reduce foreign exchange inflows and destabilize Nigeria’s economy.
President of the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA), Dele Kelvin Oye, has warned that this development jeopardizes Nigeria’s critical export market, which includes crude oil, liquefied natural gas, and agricultural products.
Speaking at the 2025 Vanguard Economic Discourse, Oye highlighted the far-reaching consequences of the tariff hike, stating, “The ripple effects of reduced demand could precipitate job losses, economic instability, and a decline in vital foreign exchange inflows, particularly for our non-oil sectors.”
He emphasized the need for Nigeria to confront these challenges head-on, as the tariff threatens to undermine key sectors of the economy.
America First policy
The tariff hike is part of Trump’s “America First” policy, which has introduced a paradigm shift in global trade dynamics.
Oye described this shift as a move away from cooperative, rules-based trading systems under the World Trade Organization (WTO) to an environment fraught with uncertainty.
“This transformation not only disrupts global markets and supply chains but poses an acute threat to our competitive standing in international trade,” he said.
Impact on SMEs and innovation
Beyond tariffs, Oye pointed to broader ramifications of U.S. policies, including a significant decrease in funding for initiatives that empower Africa’s start-ups.
He cited the $51 million cut from the United States Development Fund, which affects countries like Nigeria and Kenya.
“The grants previously allotted to our SMEs are critical for nurturing innovation and entrepreneurship within our local economies,” Oye remarked.
He lamented the lack of support for small and medium enterprises (SMEs), which are vital to Nigeria’s economic growth. Without adequate funding and policy support, SMEs face challenges in scaling operations and driving innovation.
Strategic pathways for economic resilience
Despite the challenges, Oye expressed optimism about Nigeria’s ability to turn adversity into opportunity.
- He called for deeper engagement with the African Continental Free Trade Area (AfCFTA) to encourage intra-African trade and strengthen regional supply chains.
“Together, we can create a more integrated and prosperous African market,” he said.
- Oye also stressed the importance of expanding trade partnerships beyond traditional markets, urging Nigeria to forge relationships with emerging economies such as China, India, and Brazil.
- Strategic investment in transport and logistics infrastructure, he noted, is essential for improving market accessibility and attracting foreign direct investment.
Finally, Oye emphasized the need to invest in Nigeria’s greatest asset—its people. “We must emphasize vocational training and education to cultivate a skilled workforce ready to meet the demands of future industries,” he said.
By empowering human capital and fostering innovation, Nigeria can build a resilient economy capable of weathering global trade disruptions.
What you should know
Trump on Wednesday announced a 90-day pause on newly implemented reciprocal tariffs affecting dozens of trade partners in a dramatic policy reversal, just hours after they took effect.
- The pause comes alongside a significant escalation in duties on Chinese imports, which were hiked to 125% effective immediately. The decision marks a major shift in the administration’s trade strategy after mounting pressure from global markets, business leaders, and investors concerned about recession risks.
- The higher tariffs had targeted 56 countries and the European Union with duties exceeding 30%, sparking market volatility. Under the new arrangement, these countries will now face a baseline tariff of 10%, except China.
According to a White House official, over 75 countries have reached out to Washington seeking to negotiate revised trade agreements. Trump emphasized that none of them have retaliated, “at my strong suggestion.”
